Goldfish Swim School
Goldfish Swim School offers specialized swim instruction for children aged 4 months to 12 years in a fun environment, providing services like lessons, parties, and open swim times. Known for quality aquatic activities, it operates as an LLC with franchises totaling investments between $1,663,263 to $3,816,733.
About Goldfish Swim School
Goldfish Swim School franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operations of a Goldfish Swim School franchise ranges from $1,663,263 to $3,746,733. This range includes costs such as the initial franchise fee and other expenses [p.1].
What is the initial franchise fee?
The initial franchise fee is $50,000 for the first franchised swim school and $40,000 for each subsequent franchised swim school, as specified in [p.233].
What are the ongoing royalty and advertising fees?
According to [p.312], franchisees pay royalties and brand fund fees based on a percentage of their gross sales, which are invoiced monthly and paid in the following month. Additionally, there are additional monthly fees for technology support provided to the franchisees. [p.101] specifies that late fees apply if amounts due are not received within five days after the due date.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is typically 15 years, with an option to renew or transfer the franchise agreement to a new or existing franchisee [p.312]. However, specific terms for renewal are not detailed in these excerpts.
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but you need to obtain written permission from the franchisor first. Additionally, if you propose to sell or otherwise transfer (including by death or incapacity) the Franchised Swim School or any of its assets outside of the normal course of business, you must deliver a bona fide, binding, executed written agreement to purchase such interest of Franchisee only, along with all pertinent documents including any contract or due diligence materials, to the franchisor. [p.160]
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if the franchisee or an owner breaches a material term of the agreement and fails to cure such breach within the specified period [p.146]. Additionally, the franchisor has the right to terminate the agreement without giving the franchisee an opportunity to cure if certain conditions are met, though specific grounds for these non-curable terminations are not detailed in the provided excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you receive an exclusive territory under the Franchise Agreement [p.45]. The franchisor will not establish other franchised or company-owned swim schools using the System within your designated area as long as you are not in default of the agreement. This exclusivity is not dependent on achieving certain sales volume or market penetration [p.45].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs for designated managers, on-site general managers (if different), other required managers, and control persons or owners. This includes operational aspects like sales and marketing methods, financial controls, customer service techniques, and record-keeping [p.119]. Additionally, the franchisor may provide ongoing training sessions, though these are limited to no more than four sessions per year for a total of eight days, with Franchisee responsible for travel costs and fees [p.122]. The franchisor also offers customer sales support services, which may include responding to after-hours phone calls and emails, but Franchisee must pay a proportionate share of the costs or reasonable charge as per Brand Standards Manual [p.144].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates there are 14 total outlets [p.28]. As of the most recently completed fiscal year, none of the franchisees had their outlet terminated, cancelled, transferred, not renewed, or otherwise ceased to do business under a franchise agreement [p.76, p.339].
Does the franchisor share any financial performance or earnings information?
The franchisor only shares financial performance information as specified in Item 19 of the Franchise Disclosure Document and does not authorize its officers, directors, employees, or agents to provide additional financial performance information. [p.173, p.269, p.70, p.271] Any other financial performance information received should be reported to the franchisor, the Federal Trade Commission, and appropriate state regulatory agencies. [p.70]
What am I restricted to selling, and where must I buy supplies?
You are not restricted on what goods and services you can sell using the Franchise System, nor are there restrictions on where you can sell them, including outside your designated area. However, you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate, which could be more expensive than other options [p.4].